The new Chancellor of the Exchequer, Jeremy Hunt announced his Autumn Budget on 17 November; here are some key takeaways that may be relevant to you and your business.
From April 2023:
The NLW/NMW rates increase to:
There are no changes to corporation tax as a result of this announcement for most businesses outside the energy sector.
The planned increase in April 2023 to the corporation tax rate (ranging from 19% to 25%) for companies with profits from £50,000, up to and above £250,000 that was previously cancelled has, of course, been reintroduced in October.
From April 2023:
The personal allowance will remain at £12,570, and the Higher Rate (40%) threshold will remain at £50,270. The Additional Rate (45%) threshold will be cut from £150,000 to £125,140.
The dividend allowance will be cut to £1,000 from the current £2,000.
Married Couple’s Allowance rises from £364.00 to £401.00 (min) and from £941.50 to £1037.50 (max).
From April 2024:
The dividend allowance will be cut again to £500 from £1,000.
Employers Secondary NICs:
The Secondary Threshold has been fixed at £9,100 until April 2028, and the Employers’ NICs allowance will remain at £5,000.
(Self-employed) Class 2 and Class 3 NICs:
From April 2023, the Class 2 rate will be £3.45 per week, and the Class 3 rate will be £17.45 per week.
From April 2023:
The Annual Exempt Amount will be reduced from £12,300 to £6,000.
From April 2024:
This will be further reduced from £6,000 to £3,000.
The rate for electric cars will increase by 1% from 2025/26 to 2027/28, up to a maximum of 5% and by 1% up to a maximum of 21% for Ultra-low emission cars.
All other vehicle bands will increase by 1% a year up to a maximum of 37% and will be fixed in 2026/27 and 2027/28.
The devolved parliaments in Scotland and Wales will make their own decision on whether they will wish to make any changes to Stamp Duty Land Tax (Land Transaction Tax in Wales). The most recent information can be found here:
Read more on the Autumn Statement 2022 here. https://www.gov.uk/government/publications/autumn-statement-2022-documents/autumn-statement-2022-html
This information is subject to change and is not professional advice. Refer to our disclaimer for more details.